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- Deposit-taking institutions and authorized payment service providers will receive a total of J$230 million (approximately US$1.5 million)
- The bank had planned to launch its trial program in May, but it was postponed for unknown reasons
- The bank had planned to launch its trial program in May, but it was postponed for unknown reasons
As part of the CBDC pilot program, which runs until December, a total of J$230 million, or around US$1.5 million, will be distributed to deposit-taking institutions and authorized payment service providers. Dr. Nigel Clarke, Jamaica’s Minister of Finance, pledged that by the conclusion of the fiscal year, a legal reform to accompany the country’s CBDC would be in place. The bank had planned to launch its trial program in May, but it was postponed for unknown reasons. Since early 2020, Jamaica has been working on establishing a CBDC.
Bank of Jamaica aims to issue $1.5 million in CBDC
As part of a pilot program that will finish in December, the Bank of Jamaica aims to issue $1.5 million in CBDC to institutions and authorized payment service providers. The Bank of Jamaica, or BOJ, has minted the country’s first batch of CBDC, indicating that the country’s central bank digital currency (CBDC) is moving forward quickly. At a formal event on Monday, the BOJ officially stated that its specialized CBDC section showed the process of minting digital money.
The process of creating a digital version of the Jamaican dollar (JMD) was overseen by Jamaica’s finance minister, Nigel Clarke, BOJ governor Richard Byles, and a group of senior BOJ executives, as well as a management team from eCurrency Mint, an Irish technology startup. According to the release, as part of a digital currency trial that will expire in December, the BOJ plans to issue 230 million JMD ($1.47 million) in the form of a CBDC to deposit-taking institutions and authorized payment service providers.
Quick progress is shown by the Jamaican Government in Digital Currencies
Minister Clarke stated that the Jamaican government has made quick progress in the establishment of the country’s digital currency project, emphasizing the initiative’s importance in the growth of the island’s digital economy. Local politicians are working on legislative reform to give a legal framework for the Jamaican CBDC by the end of 2021, according to the official.
Jamaica’s next CBDC adoption stage, according to BOJ governor Byles, will be to achieve universal access and acceptability by delivering the CBDC to users. According to the statement, the Jamaican CBDC wants to provide a number of benefits to users, including improved access to efficient and secure payment methods. CBDC gives an opportunity for deposit-taking institutions and the BOJ to improve cash management processes and expenses, according to the central bank.
The announcement comes as a growing number of countries test national CBDC projects, with Venezuela aiming to start one in October. Retail CBDCs, according to a Friday research by JPMorgan strategist Josh Younger, risk disintermediating commercial banks and losing 20% to 30% of their funding base.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
